Implementing Total Rewards Strategies: Compensation and Promotion Plan

This report delves into the implementation of total rewards strategies within organizations, focusing on compensation and promotion plans to promote corporate goals. It outlines the key components of a total rewards system, including compensation (incentives, base pay, merit pay), benefits (paid time off, health schemes, retirement plans), and personal growth opportunities (career development, training). The report details the formation of a project team, emphasizing the importance of selecting a team leader and assigning individual roles. Furthermore, it describes the four phases of implementing a total rewards system: assessment (through focus groups, industry benchmarks, and policy reviews), design (defining rewards and promotional aspects), execution (determining eligibility and communicating changes), and evaluation (regular assessments of the plan's effectiveness). The report also includes a case study for AtoZ Corporations and provides references to relevant literature. Overall, it offers a comprehensive guide for organizations seeking to improve employee satisfaction and achieve strategic objectives through effective rewards strategies.

COMPENSATION AND
PROMOTION PLAN TO
PROMOTE CORPORATE
GOALS IN
ORGANIZATIONS.

Total Rewards Strategies
The total reward system is designed not only for
the financial compensations but the personal
and professional growths as well.
 Compensation: Incentives, base pay, merit pay,
pay increase and promotions
 Benefits: Paid time off, Health and Welfare
schemes, Retirement plans
 Personal growth: Career development, training,
performance management

Formation of project Team
 Assembling the right team for the
project increases the chance of success
 The first step towards building the right
team is o select the team leader
 There might be the requirement of
selecting people outside the known
team to get additional support in
technical or management skill issues.
 The last important thing is
communication the project objective
and assigning the role of individual in
the team.

Implementation of
compensation and
promotional system: StagesAssessment
Design
Execution
Evaluation

Phase 1: Assessment
 Assessment should be primarily done through the focus group. The
surveys of this focus group about the compensation policies of the
company could generate the ideas of review
 Surveys of the industry benchmarks is another source for assessment
information
 Going through the company policy documents sheds light on the
loopholes and positive aspects of the same
 Employees could be included in the assessment process through
surveys
 Going through various relevant literatures provides idea of the
articulation
 The last step is to write an assessment report

Phase 2: Design
 The types of rewards and promotional aspects are
decided in the design phase
 Compensations are paid in the rewards to the
employees in terms of their work performance
 The company team have to decide which part of the
job they would compensate for and what would be the
attributes of the employees
 Other than incentives benefits for the employees are
to be designed carefully
 Promotions are related to the personal and
professional growth

Phase 3: Execution
 During the execution stage the company has to learn about the
eligibility of the candidates for the said compensation or
promotional plans
 The top management of the organisation has to be informed
about the change executions in reward system.
 The policies must have clear mention of percentage of incentives
 Measuring the compensation and promotional plans helps the
company objective achievement in a more strategic way.
 The process of managing the reward system should be
transperant and logical

Phase 4: Evaluation
 Evaluation of the compensation and promotion
plan of the organisation is necessary
 This could be done in regular interval to get
clear idea
 Interpretations of the findings would lead to the
result indicating the effectiveness of the system

Plan for AtoZ Corporations
 The pay scale for the new employees will be increased by 1.1%
 New reward system for over achievers
 Incentives would be plan according to the nature of project
 Working hours of the employees would be reduced to 42 hours a
week
 Complementary annual bonus for the employees working more
than 2 years in the organisation
 Health care benefits for each and every employees

References
 Heneman, R. L., 2004, Implementing Total Rewards Strategies A
guide to successfully planning and implementing a total rewards
system, SHRM Foundation